More tenants sign short-term leases

More businesses are opting for short-term leases in case they have to shrink space in the future, or want to look for cheaper rent elsewhere in Manhattan. Landlords are starting to embrace the concept of short-term leases so they won’t have empty space. Time Equities even broke up a 15,000-square-foot former law firm’s office at 125 Maiden Lane, at Water Street, into 20 units, ranging from 500 to 2,000 square feet, and put most of them on the market with leases running from six months to a year. However, lenders and potential buyers like to see buildings with stable long-term rent rolls, so while short-term leases may not hurt a building’s cash flow, they can damage a building’s value.